Five things to know about today's council vote on ride-sharing

Update, 3:15 p.m. — The Chicago City Council opted to delay the vote until its May 28 meeting.

The Chicago City Council may vote today on an ordinance proposed by Mayor Rahm Emanuel that regulates the rapidly growing car-service industry, which uses smartphone apps to connect passengers with drivers, many of whom work part-time using their personal cars. The ride-sharing services are attracting customers in part because their fares are generally lower than taxis.

The Emanuel proposal divides ride-sharing firms into two categories, based on the average number of hours worked per week by drivers. Class A firms have a companywide average of up to 20 hours per driver, while Class B companies have a higher average and are subject to stricter regulations. As many as 75 percent of all ride-sharing drivers are part-time, although city officials say they don't know how many firms will qualify for Class B. But most — if not all — ride-sharing companies, such as Uber Technologies Inc. and Lyft Inc., likely will fall into Class A, where the oversight is lighter.

Mr. Emanuel proposed his ordinance Feb. 5, and it was approved by a key City Council committee March 24. The ride-sharing companies support the proposal, while the taxi companies are opposed. The insurance industry also has pushed for greater coverage of ride-share drivers.

Meanwhile, state Rep. Michael Zalewski, a Democrat from west suburban Riverside, introduced a ride-sharing bill in the Illinois General Assembly in March. That bill has passed the House of Representatives and is under consideration in the Senate. The taxi companies prefer the state bill over the city proposal. If both measures pass, state law would supersede the city ordinance.

Here's a comparison of the proposed Chicago ordinance for Class B ride-sharing companies, the existing ordinance for taxi cabs and the proposed state bill for ride-sharing.

1. FARES

City proposal

Unregulated, changing with supply and demand

Cannot be 20 percent more than quoted

Taxi ordinance

Set by the City Council

$3.25 plus $1.80 per mile and about $1 every three minutes

House bill

Unregulated

Makes surge pricing available to taxi drivers who get customers through an app

2. INSURANCE REQUIREMENT

City proposal

While en route to picking up a passenger, until the trip is complete: $1 million per accident

All other times: $20,000 per person and $40,000 per accident, the state minimum

Taxi ordinance

At all times: $350,000 per accident

State bill

From the time the driver turns on the app: $500,000 per accident

3. SUPPLY OF CARS

City proposal

Unlimited

Taxi ordinance

Set by the City Council, with about 6,800 active cars

Medallions cost $336,000 in the private market in 2014

State bill

Unlimited

4. DRIVER'S LICENSE

City proposal

Ordinary license

Taxi ordinance

Chauffeur's license

State bill

Based on individual driver's workload

Up to 18 hours a week: ordinary

More than 18 hours: chauffeur's

5. SAFETY INSPECTIONS

City proposal

Self-certification

Taxi ordinance

Inspection every six months if car is more than three years old

State bill

Inspection every six months as required by the Illinois Vehicle Code for taxis that aren't regulated by city ordinance